QCP Identified a Leverage Rise on Bitcoin and Ethereum

Despite the fluctuations experienced in the cryptocurrency market in recent weeks, investors continue to act without losing interest in Bitcoin and Ethereum. According to a report published by QCP, Bitcoin (BTC) and Ethereum (ETH) have returned to the 112 thousand and 4,100 dollar levels, respectively, after last week's decline. These price movements indicate recovery signals despite the crypto market facing sharp sell-offs.

QCP analysts emphasize that last week's selling pressure was absorbed better than expected. In particular, despite the suggested ETF outflows for December, the spot markets remaining balanced over the weekend was a reassuring development for investors. Furthermore, a decrease in market volatility is observed ahead of the Non-Farm Payroll (NFP) data to be announced on Friday. Although there are concerns that NFP data might be postponed due to the possibility of a US government shutdown, it is clear that Wall Street's recovery has had a positive reflection on the crypto market.

From the perspective of leveraged transactions, QCP states that investors quickly returned to leveraged transactions after last week's liquidations. Specifically, the open interest in perpetual futures contracts increased from 42.8 billion dollars to 43.6 billion dollars. It is noteworthy that funding rates for Bitcoin perpetual contracts still remain positive, reaching 13% according to Deribit data. Bitcoin, which has shown a volatile performance on a monthly basis, has recorded an increase of over 3% so far in September. However, analysts state that Bitcoin needs to surpass the 115 thousand dollar level to confirm its uptrend.

In the options markets, this cautious outlook continues to be reflected. A gradual normalization in put skew and open interest is observed. It is of great importance for investors to carefully monitor the movements of Bitcoin and Ethereum during this period to evaluate potential opportunities.